Equilibrium play in voluntary ultimatum games: Beneficence cannot be extorted

B-Tier
Journal: Games and Economic Behavior
Year: 2018
Volume: 109
Issue: C
Pages: 452-464

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

An exceptionally robust result in experimental economics is the failure to observe equilibrium (subgame perfect) play in the ultimatum game. A heretofore unnoticed feature of the game is that neither player voluntarily chooses to play. Motivated by Adam Smith's proposition that beneficence—like that of non-equilibrium play in the ultimatum game—cannot be extorted by force, we offer the responder the opportunity to opt out of the game for a mere $1 payoff for both players. We observe far higher rates of equilibrium play, including highly unequal splits, than heretofore reported in binary choice versions of the game.

Technical Details

RePEc Handle
repec:eee:gamebe:v:109:y:2018:i:c:p:452-464
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29